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Test Bank Intermediate Accounting IFRS Edition Volume 2
1st Edition Kieso
Financial Accounting II (香港科技大學)
Studocu is not sponsored or endorsed by any college or university
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CHAPTER 15
EQUITY
TRUE-FALSE—Conceptual
Answer No. Description
T 1. State a corporation incorporates in.
F 2. Definition of preemptive right.
T 3. Ordinary shares as residual interest.
F 4. Earned capital definition.
T 5. Reporting true no-par shares.
F 6. Allocating proceeds in lump sum sales.
T 7. Accounting for shares issued for noncash consideration.
F 8. Definition of treasury shares.
F 9. Reporting treasury shares under cost method.
T 10. Selling treasury shares below cost.
F 11. Participating preference shares.
T 12. Callable preference shares.
T 13. Restricting legal capital.
F 14. Disclosing dividend policy.
F 15. Affect of dividends on total equity.
T 16. Property dividends definition.
T 17. Accounting for small share dividend.
F 18. Share splits and large share dividends.
F 19. Computing rate of return on ordinary share equity.
T 20. Computing payout ratio.
MULTIPLE CHOICE—Conceptual
Answer No. Description
c 21. Nature of shareholders' interest.
b 22. Pre-emptive right.
a 23. Pre-emptive right.
S
b 24. Special characteristics of corporate form.
b 25. Definition of ordinary shares.
c 26. Identification of equity categories.
S
c 27. Definition of residual owner.
c 28. Nature of shareholders' equity.
d 29. Sources of shareholders' equity.
d 30. Classification of shareholders' equity.
d 31. Allocation methods for a lump sum issuance.
b 32. Ordinary shares issued in payment of services.
a 33. Costs of issuing ordinary shares.
b 34. Creation of "secret reserves."
P
a 35. Authorized shares.
S
d 36. Par value shares.
S
b 37. Legal restrictions for profit distributions.
b 38. Ordinary No-par shares.
a 39. Accounting for issue costs.
S
a 40. Acquisition of treasury shares.
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15 - 2 Test Bank for Intermediate Accounting, IFRS Edition
MULTIPLE CHOICE—Conceptual (cont.)
Answer No. Description
P
d 41. Treasury shares definition.
c 42. Purchase of treasury shares at greater than par value.
a 43. Sale of treasury shares.
a 44. Reissued treasury shares at less than acquisition cost.
b 45. Reissued treasury shares at greater than acquisition cost.
c 46. Effect of treasury shares transactions.
c 47. Preference shares—debt features.
b 48. Cumulative feature of preference shares.
P
b 49. Reporting redeemable shares.
S
c 50. Reporting dividends in arrears.
a 51. Features of preference shares.
b 52. Preference shares participating feature.
c 53. Liquidating dividends.
c 54. Issued vs. outstanding ordinary shares.
b 55. Timing of entry to record dividends.
c 56. Shares entitled to receive a cash dividend.
c 57. Accounting for a property dividend.
a 58. Distribution of a property dividend.
a 59. Liquidating dividend.
b 60. Entry to record a liquidating dividend.
b 61. Effects of a share dividend.
b 62. Effects of a share dividend.
b 63. Effect of a large share dividend.
b 64. Large share dividend.
a 65. Small share dividend.
a 66. Small share dividend.
b 67. Classification of share dividends distributable.
b 68. Effect of share splits and share dividends.
c 69. Effect of a share split.
b 70. Disclosures in the statement of financial position.
a 71. Return on ordinary share equity calculation.
b 72. Payout ratio calculation.
c 73. Book value per share.
P
a 74. Computing book value per share.
b 75. IFRS required financial statements.
b 76. Trading on the equity definition.
c *77. Dividends and treasury shares.
a *78. Noncumulative preference shares and dividends in arrears.
a *79. Disclosure of preference dividends in arrears.
P
These questions also appear in the Problem-Solving Survival Guide.
S
These questions also appear in the Study Guide.
*This topic is dealt with in an Appendix to the chapter.
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Equity 15 - 3
MULTIPLE CHOICE—Computational
Answer No. Description
a 80. Composition of equity.
b 81. Calculation of total contributed capital.
b 82. Allocating proceeds in lump sum sales.
c 83. Allocating proceeds in lump sum sales.
d 84. Computing total contributed capital.
b 85. Allocating proceeds in lump sum sales.
c 86. Allocating proceeds in lump sum sales.
d 87. Allocating proceeds in lump sum sales.
c 88. Allocating proceeds in lump sum sales.
d 89. Recording issuance of stated value shares.
b 90. Reissue treasury shares above cost.
d 91. Computing share premium—treasury amount.
d 92. Recording purchase of treasury shares.
b 93. Reissue treasury shares—above acquisition cost.
c 94. Reissue treasury shares—cost method.
c 95. Computing share premium with treasury share transactions.
d 96. Calculation of total share premium amount.
c 97. Calculation of total share premium amount.
a 98. Total equity with treasury share transactions.
c 99. Total equity with treasury share exchange.
c 100. Calculate dividends for cumulative preference shares.
a 101. Calculate dividends for ordinary shares.
a 102. Calculate dividends for ordinary shares.
c 103. Recording issuance of convertible preference shares.
b 104. Recording conversion of convertible preference shares.
c 105. Reduction in retained earnings from property dividends.
d 106. Reduction in retained earnings from property dividends.
b 107. Reduction in retained earnings caused by a property dividend.
d 108. Reduction in retained earnings from property dividends.
d 109. Reduction in retained earnings from property dividends.
a 110. Decrease in retained earnings from cash and share dividends.
c 111. Calculation of a large share dividend.
a 112. Calculation of a small share dividend.
b 113. Calculation of a small share dividend.
b 114. Small share dividend's effect on retained earnings.
b 115. Balance of retained earnings after a small share dividend.
a 116. Calculate retained earnings available for dividends.
a 117. Calculate decrease in retained earnings.
d 118. Calculate retained earnings available for dividends.
d 119. Calculate decrease in retained earnings.
b 120. Recording small share dividend.
d 121. Accounting for share split.
a 122. Compute book value per share.
b 123. Compute rate of return on ordinary share equity.
a 124. Compute payout ratio.
c 125. Calculate the payout ratio.
a 126. Calculate book value per share.
c 127. Calculate rate of return on ordinary share equity.
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Test Bank Intermediate Accounting IFRS Edition Volume 2
1st Edition Kieso
Financial Accounting II (香港科技大學)
Studocu is not sponsored or endorsed by any college or university
Downloaded by john gatheca ()
, lOMoARcPSD|28964921
CHAPTER 15
EQUITY
TRUE-FALSE—Conceptual
Answer No. Description
T 1. State a corporation incorporates in.
F 2. Definition of preemptive right.
T 3. Ordinary shares as residual interest.
F 4. Earned capital definition.
T 5. Reporting true no-par shares.
F 6. Allocating proceeds in lump sum sales.
T 7. Accounting for shares issued for noncash consideration.
F 8. Definition of treasury shares.
F 9. Reporting treasury shares under cost method.
T 10. Selling treasury shares below cost.
F 11. Participating preference shares.
T 12. Callable preference shares.
T 13. Restricting legal capital.
F 14. Disclosing dividend policy.
F 15. Affect of dividends on total equity.
T 16. Property dividends definition.
T 17. Accounting for small share dividend.
F 18. Share splits and large share dividends.
F 19. Computing rate of return on ordinary share equity.
T 20. Computing payout ratio.
MULTIPLE CHOICE—Conceptual
Answer No. Description
c 21. Nature of shareholders' interest.
b 22. Pre-emptive right.
a 23. Pre-emptive right.
S
b 24. Special characteristics of corporate form.
b 25. Definition of ordinary shares.
c 26. Identification of equity categories.
S
c 27. Definition of residual owner.
c 28. Nature of shareholders' equity.
d 29. Sources of shareholders' equity.
d 30. Classification of shareholders' equity.
d 31. Allocation methods for a lump sum issuance.
b 32. Ordinary shares issued in payment of services.
a 33. Costs of issuing ordinary shares.
b 34. Creation of "secret reserves."
P
a 35. Authorized shares.
S
d 36. Par value shares.
S
b 37. Legal restrictions for profit distributions.
b 38. Ordinary No-par shares.
a 39. Accounting for issue costs.
S
a 40. Acquisition of treasury shares.
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15 - 2 Test Bank for Intermediate Accounting, IFRS Edition
MULTIPLE CHOICE—Conceptual (cont.)
Answer No. Description
P
d 41. Treasury shares definition.
c 42. Purchase of treasury shares at greater than par value.
a 43. Sale of treasury shares.
a 44. Reissued treasury shares at less than acquisition cost.
b 45. Reissued treasury shares at greater than acquisition cost.
c 46. Effect of treasury shares transactions.
c 47. Preference shares—debt features.
b 48. Cumulative feature of preference shares.
P
b 49. Reporting redeemable shares.
S
c 50. Reporting dividends in arrears.
a 51. Features of preference shares.
b 52. Preference shares participating feature.
c 53. Liquidating dividends.
c 54. Issued vs. outstanding ordinary shares.
b 55. Timing of entry to record dividends.
c 56. Shares entitled to receive a cash dividend.
c 57. Accounting for a property dividend.
a 58. Distribution of a property dividend.
a 59. Liquidating dividend.
b 60. Entry to record a liquidating dividend.
b 61. Effects of a share dividend.
b 62. Effects of a share dividend.
b 63. Effect of a large share dividend.
b 64. Large share dividend.
a 65. Small share dividend.
a 66. Small share dividend.
b 67. Classification of share dividends distributable.
b 68. Effect of share splits and share dividends.
c 69. Effect of a share split.
b 70. Disclosures in the statement of financial position.
a 71. Return on ordinary share equity calculation.
b 72. Payout ratio calculation.
c 73. Book value per share.
P
a 74. Computing book value per share.
b 75. IFRS required financial statements.
b 76. Trading on the equity definition.
c *77. Dividends and treasury shares.
a *78. Noncumulative preference shares and dividends in arrears.
a *79. Disclosure of preference dividends in arrears.
P
These questions also appear in the Problem-Solving Survival Guide.
S
These questions also appear in the Study Guide.
*This topic is dealt with in an Appendix to the chapter.
Downloaded by john gatheca ()
, lOMoARcPSD|28964921
Equity 15 - 3
MULTIPLE CHOICE—Computational
Answer No. Description
a 80. Composition of equity.
b 81. Calculation of total contributed capital.
b 82. Allocating proceeds in lump sum sales.
c 83. Allocating proceeds in lump sum sales.
d 84. Computing total contributed capital.
b 85. Allocating proceeds in lump sum sales.
c 86. Allocating proceeds in lump sum sales.
d 87. Allocating proceeds in lump sum sales.
c 88. Allocating proceeds in lump sum sales.
d 89. Recording issuance of stated value shares.
b 90. Reissue treasury shares above cost.
d 91. Computing share premium—treasury amount.
d 92. Recording purchase of treasury shares.
b 93. Reissue treasury shares—above acquisition cost.
c 94. Reissue treasury shares—cost method.
c 95. Computing share premium with treasury share transactions.
d 96. Calculation of total share premium amount.
c 97. Calculation of total share premium amount.
a 98. Total equity with treasury share transactions.
c 99. Total equity with treasury share exchange.
c 100. Calculate dividends for cumulative preference shares.
a 101. Calculate dividends for ordinary shares.
a 102. Calculate dividends for ordinary shares.
c 103. Recording issuance of convertible preference shares.
b 104. Recording conversion of convertible preference shares.
c 105. Reduction in retained earnings from property dividends.
d 106. Reduction in retained earnings from property dividends.
b 107. Reduction in retained earnings caused by a property dividend.
d 108. Reduction in retained earnings from property dividends.
d 109. Reduction in retained earnings from property dividends.
a 110. Decrease in retained earnings from cash and share dividends.
c 111. Calculation of a large share dividend.
a 112. Calculation of a small share dividend.
b 113. Calculation of a small share dividend.
b 114. Small share dividend's effect on retained earnings.
b 115. Balance of retained earnings after a small share dividend.
a 116. Calculate retained earnings available for dividends.
a 117. Calculate decrease in retained earnings.
d 118. Calculate retained earnings available for dividends.
d 119. Calculate decrease in retained earnings.
b 120. Recording small share dividend.
d 121. Accounting for share split.
a 122. Compute book value per share.
b 123. Compute rate of return on ordinary share equity.
a 124. Compute payout ratio.
c 125. Calculate the payout ratio.
a 126. Calculate book value per share.
c 127. Calculate rate of return on ordinary share equity.
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